Rothschild to advise on Canary Wharf

BY Edward Simpkins

12:01AM BST 06 Jul 2003

The largest shareholder in Canary Wharf and the backer of Paul Reichmann when he bought the property company out of receivership has appointed the investment bank NM Rothschild to advise on its options.

The decision by the wealthy Glick family will increase speculation that Reichmann, who chairs Canary Wharf Group, is preparing to make his own bid. Reichmann still holds a personal stake of 7.73 per cent.

The Glick family, which has extensive interests in the diamond industry as well as in New York property, took a 15.65 per cent stake in Canary Wharf after it backed Reichmann's £800m repurchase of the Docklands development out of administration in 1995.

The Glicks are one of a series of Reichmann allies from 1995 who still own substantial shareholdings in Canary Wharf. These include Franklin Resources, with 6.9 per cent, and the insurer CNA Financial, controlled by the Tisch family, which holds 5.8 per cent.

Canary Wharf became the subject of bid talk after the company admitted three weeks ago it had received a number of approaches from potential bidders. It has set up an independent committee led by a non-executive director, Sir Martin Jacomb, to consider offers.